Macquarie Int Infrastructure Fund : MIIF Announces Financial Results for the 9 Months ended 30 September 2014

Microsoft Word - 1418841_2.doc Macquarie International Infrastructure Fund Limited

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Macquarie International Infrastructure Fund Limited (MIIF) MIIF ANNOUNCES FINANCIAL RESULTS FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2014 Singapore, 12 November 2014 - Macquarie International Infrastructure Fund Limited

(MIIF or Company) today announced its financial results for the nine months ended
30 September 2014.
MIIF reported a net loss on an adjusted basis (net loss) of S$1.9 million for the nine months ended 30 September 2014, compared to a net income on an adjusted basis of S$14.8 million in the prior corresponding period. The net loss is due to the cessation of distribution income from Taiwan Broadband Communications (TBC), which was divested in 2013 and MIIF's remaining business, Hua Nan Expressway (HNE), paying an annual distribution only at the end of the fourth quarter.

Net Asset Value (NAV)

MIIF's NAV as at 30 September 2014 was S$141.0 million1 (or 12.3 cps), which is comparable to S$141.5 million (or 12.3 cps) as at 30 June 2014. It should be noted that no provision for a potential success fee to be earned by MIIF's manager has been made as at 30 September 2014 (refer to footnote 1 for more details).

Operational Highlights

Operational highlights for HNE are as follows:
• Total traffic volumes of 56.2 million for the nine months ended 30 September 2014 were 13.3% higher than the prior corresponding period due to favourable traffic drivers, such as the continued positive impact of Guanghe Expressway, a complementary feeder road which opened in December 2011, on-going driver

1 Reference is made to the amended management fee arrangement with MIIF's manager, Macquarie Infrastructure Management (Asia) Pty Limited (MIMAL), which was approved by MIIF's shareholders at the MIIF Annual General Meeting on 8 March 2013. MIMAL will be entitled to a success fee when total divestment proceeds of S$694.9 million (the Threshold Level) are achieved from the divestment of TBC, HNE, Changshu Xinghua Port (CXP) and Miaoli Wind. Divestment proceeds received from the sale of TBC, CXP and Miaoli Wind were S$617.3 million. The Threshold Level will be met if divestment proceeds from the sale of HNE exceed S$77.6 million. However, since the conditions for MIIF to pay the success fee have not been met, there is no present obligation to pay the success fee and accordingly a provision for a potential success fee has not been made as at 30 September 2014. Refer to note J(x) on page 35 of MIIF's SGX Report for the quarter and nine months ended 30 September 2014.

None of the entities noted in this document is an authorised deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of these entities do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542 (MBL). MBL does not guarantee or otherwise provide assurance in respect of the obligations of these entities. Macquarie International Infrastructure Fund Limited 2

recognition of HNE's lower toll rates following the toll rate standardisation and the partial closures of Xinguang Expressway and Northern Ring Road.
• As a result of the growth in total traffic volumes, HNE's revenue for the nine months ended 30 September 2014 was RMB432.4 million, 14.4% higher than prior corresponding period (two periods with the same toll rates).
The process to divest HNE has to date generated a range of indicative offers from potential buyers. The divestment process is ongoing and if successfully executed, this would lead to the winding up of MIIF.

Outlook

Whilst HNE, in the nine months to 30 September 2014, has benefited from favourable traffic drivers (such as those illustrated above), the slowdown in the Chinese economy is anticipated to moderate the rate of growth in HNE's traffic volumes. In addition, the benefit that HNE has enjoyed as a result of a traffic diversion caused by the partial closure of a section of Xinguang Expressway may not continue as road works concluded in August 2014. Similarly, the benefit from traffic diversion caused by the partial closure of a section of Northern Ring Road may not continue as road works conclude in the fourth quarter.
MIIF is focused on divesting HNE in a timely manner whilst maximising proceeds for MIIF's shareholders. In accordance with MIIF's continuous disclosure obligations, MIIF will keep the market appropriately informed of further developments in the divestment of HNE.

Dividend Guidance

MIIF's ordinary dividend is based on the distribution that MIIF receives from HNE and is generated from HNE's normal operations.
In line with guidance provided at MIIF's Annual General Meeting on 21 April 2014 and reaffirmed in MIIF's announcement on 14 May 2014, given HNE pays a distribution to MIIF annually, MIIF is expected to also pay an annual dividend to MIIF's shareholders moving forward. It is expected that MIIF will receive the distribution from HNE in the fourth quarter.
If HNE is not divested this year, it is anticipated that the next dividend to MIIF's shareholders will be declared and paid in the first quarter of 2015.
For further information, please contact:

Andrew Yeoh Fiona McDonald

Investor Relations, Singapore Corporate Communications, Hong Kong
Tel: [phone] Tel: [phone]
Email: [e-mail] Email: [e-mail]

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